French cognac producers launch vine destruction program as global demand collapses
French cognac producers are launching a program to destroy vineyards after a 33 percent sales drop. The initiative aims to counter a major industry downturn.
洞察:
Cognac producers in France 
FRhave announced the implementation of a significant demand-reduction strategy that involves paying vineyard owners to destroy their vines. This structural response comes after the industry experienced a collapse in sales volume of more than one-third over the past three years. To manage the crisis, the Union des Grandes Cognac wine growers association, or UGVC, will provide 6,000 euros per hectare in destruction payments, which will be financed through 10-year borrowing. This industry-led funding will be supplemented by an additional 4,000 euros per hectare provided by the agriculture ministry in France.
FRhave announced the implementation of a significant demand-reduction strategy that involves paying vineyard owners to destroy their vines. This structural response comes after the industry experienced a collapse in sales volume of more than one-third over the past three years. To manage the crisis, the Union des Grandes Cognac wine growers association, or UGVC, will provide 6,000 euros per hectare in destruction payments, which will be financed through 10-year borrowing. This industry-led funding will be supplemented by an additional 4,000 euros per hectare provided by the agriculture ministry in France.
